Electric Two-Wheelers Gets Cheaper: FAME II Amendment Announced

Electric two-wheelers get cheaper due to the FAME II amendment announced in India. The Indian Government has increased the subsidy incentives available on the electric scooter. The Ather 450X will now cost Rs 14,500 after the subsidy revision.

Electric Two-Wheelers Gets Cheaper: FAME II Amendment Announced, Subsidy Incentives Increased & Other Details

FAME II Amendment

  • Electric two-wheeler subsidy increased to Rs 15,000 per kWh of the battery pack
  • Electric three-wheeler sales to increase to 3 lakh units through EESL by lowering up-front costs
  • Electric buses implementation to increase also via EESL in nine cities
  • Electric Two-Wheelers Gets Cheaper: FAME II Amendment Announced, Subsidy Incentives Increased & Other Details

    Electric two-wheelers that are made in Indian are registered under the FAME II scheme were initially offered with a subsidy of Rs 10,000 per kWh of the battery pack. However, after the policy revision, the incentives have increased by 50 per cent.

    Electric Two-Wheelers Gets Cheaper: FAME II Amendment Announced, Subsidy Incentives Increased & Other Details

    Commenting on the FAME II amendment, Tarun Mehta, CEO and Co-founder, Ather Energy, said, "The revision in the FAME policy, increasing the subsidy by 50% per KWh is a phenomenal move. Sales of electric two-wheelers have grown despite the pandemic and with this additional subsidy, we expect electric two-wheeler sales to disrupt the market, and clock 6 million+ units by 2025."

    Electric Two-Wheelers Gets Cheaper: FAME II Amendment Announced, Subsidy Incentives Increased & Other Details

    He further added, "Ather Energy already has plans to expand distribution to 30 cities in the next 6 months and this increased subsidy will help accelerate consumer demand, immensely. The Government's continued support to drive adoption of EVs, with a keen focus on locally built electric two-wheelers will make India the manufacturing hub of EVs."

    Electric Two-Wheelers Gets Cheaper: FAME II Amendment Announced, Subsidy Incentives Increased & Other Details

    Mr Suhas Rajkumar, Founder and CEO, Simple Energy, said, "The increase in the subsidy is very exciting and positive news for the two-wheeler EV industry. Manufacturers like us will benefit as this move will significantly improve the unit economics and accelerate the EV adaption as it becomes much more affordable."

    Electric Two-Wheelers Gets Cheaper: FAME II Amendment Announced, Subsidy Incentives Increased & Other Details

    He further added, "This will be the right push for the industry which is still considered to be at a nascent stage. Our pricing would also be affordable as the announcement has come in right before the launch of our flagship product (Simple Energy Mark 2) on 15th August this year."

    Electric Two-Wheelers Gets Cheaper: FAME II Amendment Announced, Subsidy Incentives Increased & Other Details

    The e-scooters need to have a minimum range of 80 km per charge and a minimum top speed of 40kmph to become eligible for the FAME-II scheme subsidy. Ather electric scooter meets all the above criteria to offers incentives with every purchase.

    Electric Two-Wheelers Gets Cheaper: FAME II Amendment Announced, Subsidy Incentives Increased & Other Details

    As per the FAME-II scheme, the government of India allotted Rs 8,800 crore to support electric vehicle buyers. Additionally, Rs 1,200 crore was allocated to set up charging infrastructure in the country. It aimed to support one million two-wheelers, 500,000 three-wheelers, 55,000 cars and 7,000 e-buses.

    Electric Two-Wheelers Gets Cheaper: FAME II Amendment Announced, Subsidy Incentives Increased & Other Details

    Additionally, the Ministry of Road Transport and Highways (MoRTH) has also proposed to exempt the registration fee for electric vehicles in the country. According to the government organization, the initiative will help for faster adoption of EVs in the country — here are more details.

    Electric Two-Wheelers Gets Cheaper: FAME II Amendment Announced, Subsidy Incentives Increased & Other Details

    Thoughts About The Electric Two-Wheelers Gets Cheaper

    Indian Government is gunning for faster adoption of EV in the country. The FAME II scheme amendment has reduced the price of electric two-wheelers by a substantial margin making it affordable. With the change, the prices difference between ICE and electric powered two-wheelers reduces substantially.

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Read more on: #auto news #green vehicles
Article Published On: Saturday, June 12, 2021, 12:05 [IST]
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